HEXO announces C$150 million ATM equity offering program

Torys acted as counsel to the agents with a team that included Robbie Leibel, Frazer House, Kate Stevens and Danielle Marjoram (corporate/Canadian securities), Andy Beck and Mile Kurta (corporate/U.S. securities), Richard Johnson and Ben Mann (Canadian tax), and Peter Keenan and Chris Saki (U.S. tax).

On May 11, 2021, Hexo Corp. (“HEXO”, or the “Company”) announced it has established an at-the-market equity program (the “ATM Program”) that allows HEXO to issue and sell up to C$150 million of common shares in the capital of HEXO from treasury to the public, from time to time, at the company’s discretion through the Toronto Stock Exchange (the “TSX”), the New York Stock Exchange (the “NYSE”), or any other recognized marketplace on which the common shares are listed, quoted or otherwise traded in Canada and the United States.

Distributions of the common shares under the ATM Program will be made pursuant to the terms of an equity distribution agreement dated May 11, 2021 entered into among the Company, A.G.P./Alliance Global Partners and BMO Capital Markets Corp., as U.S. agents, and BMO Nesbitt Burns Inc., as Canadian agent.

The volume and timing of distributions under the ATM Program, if any, will be determined in the Company’s sole discretion. The common shares will be distributed at the market prices prevailing at the time of each sale and, as a result, prices may vary as between purchasers and during the period of the ATM Program. The ATM Program will be effective until the earlier of the issuance and sale of all of the common shares issuable pursuant to the ATM Program and June 7, 2023, unless terminated prior to such date by the Company or the agents in accordance with the terms of the distribution agreement.

The Company expects to use the net proceeds from the ATM Program for general corporate purposes.

Further information can be found on Globe Newswire’s website.

HEXO Corp is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market.